Zinger Key Points
- A more conservative goal of $100 monthly dividend income would require 625 shares of THOR Industries.
- An investor would need to own $326,875 worth of THOR Industries to generate a monthly dividend income of $500.
- Get New Picks of the Market's Top Stocks
Thor Industries, Inc. THO will release earnings results for its fiscal 2024 fourth quarter, before the opening bell on Tuesday, Sept. 24.
Analysts expect the company to report quarterly earnings at $4.83 per share, up from $4.55 per share in the year-ago period. The company projects to report revenue of $21.99 billion for the quarter, according to data from Benzinga Pro.
On July 18, Benchmark analyst Michael Albanese initiated coverage on Thor Industries with a Hold rating.
With the recent buzz around Thor Industries, some investors may be eyeing potential gains from the company's dividends too. Thor Industries currently offers an annual dividend yield of 1.84%. That’s a quarterly dividend amount of 48 cents per share ($1.92 a year).
So, how can investors exploit its dividend yield to pocket a regular $500 monthly?
To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $326,875 or around 3,125 shares. For a more modest $100 per month or $1,200 per year, you would need $65,375 or around 625 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.92 in this case). So, $6,000 / $1.92 = 3,125 ($500 per month), and $1,200 / $1.92 = 625 shares ($100 per month).
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.
For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.
THO Price Action: Shares of Thor Industries fell 0.6% to close at $104.60 on Wednesday.
Read More:
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
